I need help for the analysis part( sheet 2), required the same answer with check figure on the bottom, thank you!

Facts, Issues, & Authorities Facts Justin is a single taxpayer with no dependents, who owns IMC, Inc. (a C corporation). Both entities use the calendar year and cash basis for tax reporting purposes. Based on year-end tax planning for 2014, the corporation expects to earn taxable income (before paying Justin's salary) of $300,000. The corporation plans to pay 60% of that amount as compensation to Justin, in some combination of salary and dividend. Justin has ordinary taxable income from other sources of $50,000. Issue How should Justin's compensation package be allocated between salary and dividend? Use only three alternatives in your analysis: Salary Dividends Authorities #1 0% 100% #2 50% 50% #3 100% 0% IRC 1 imposes a tax on an individual's taxable income while IRC 11 imposes a tax on a corporation's taxable income. In addition, 3101 and 3111 impose taxes under the Federal Insurance Contributions Act on employees and employers, respectively. For both individuals and corporations, IRC 63 defines taxable income to mean gross income (which generally includes all income from whatever source derived, per 61) minus allowable deductions and excluding items specifically identified in 101-140. Section 162 authorizes deductions for the ordinary and necessary expenditures incurred in the conduct of a trade or business. More specifically, 162(a)(1) allows a deduction for "reasonable allowance for salaries or other compensation." 5. Based on your analysis of the alternatives, which alternative should the taxpayer select? 6. Briefly explain why the taxpayers should select that alternative. 7. Briefly explain which tax planning strategy that alternative relies on. 8. Briefly explain whether the alternative that you selected would change if the provisions under 1(h)(11) expired. 9. Briefly explain why the alternative that you selected would or would not change if 1(h)(11) expired. 10. Assume that the spreadsheet analysis indicated that the taxpayer should take the compensation package as salary. However, you know that the compensation would be unreasonable. Which feasibility constraint is preventing the taxpayers from implementing the conclusion supported by the spreadsheet analysis? A taxpayer should select an alternative of minimum tax(ATM)imposed by the UNITED STATES federal government. Because it has nearly a flat rate on adjusted amount of taxable income above a certain threshold or exemption. This alternative relies on American Taxpayer Relief Act of 2012,which indexes to inflation the income threshold for being subject to the tax. This altenative will not change since taxpayers can use special capital gain rates in effects for regular tax . Because there other regular tax which may be lower than the ATM tax rates that would otherwise apply. It is the differences in taxation constraint of corporate distributions which encourage C corporations to pay high compensation to their shareholder-employees and encourage S corporations to pay low compensation to their shareholder-employees. Links to Worksheets in File Introduction Questions Analysis ASSUMPTIONS: Corporate Taxable Income before Officer Compensation $ Percentage of Corporate TI for Officer Compensation Tax Year 1(h)(11) Expired Alternative #1 Alternative #2 Alternative #3 Alternative #1 Alternative #2 Alternative #3 0% 50% 100% 0% 50% 300,000 300,000 150,000 11,475 461,475 300,000 300,000 22,950 622,950 0 0 0 300,000 461,475 622,950 0 0 0 180,000 150,000 150,000 300,000 180,000 300,000 300,000 0 0 0 180,000 300,000 300,000 0 0 0 $ 480,000 $ 761,475 $ 922,950 $ $ 214,394 $ 227,889 $ 244,310 $ 300,000 Corporation's After Tax Wealth OWNER/OFFICER Officer'sTaxable Income before Corporate Compensation Officer's Salary Officer's Dividends Officer's Taxable Income Officer's Income Tax (ordinary) Officer's Income Tax (dividends) FICA Tax on Corporate Salary Officer's After Tax Wealth Check Figures 60% 2014 1(h)(11) In Effect Percentage of Payment to be Paid as Salary CORPORATION Corporate Income before Deducting Officer's Salary Officer's Salary FICA Tax on Officer's Salary Corporate Taxable Income Corporate Income Tax Corporate Dividends Paid Total After Tax Wealth 300,000 - $ 189,992 $ - 100% $ 214,007 $ 244,310